The strategy of investing in the beaten-down market

 Hello, friends welcome to the #Traderlifestyle

I hope you are very well and you also had read my last blog about why it is important to know the psychology behind the trade if you are the trader to know the psychology behind the trade taken is very important because when you know the reason behind the trade taken gave you confidence about your trade, so must read that blog if you don't read.

so friends in this blog I will talk about the strategy of investing in the beaten-down market, what is the important thing which you have to remember before investing, what is the appropriate filter of stock selection.

Penny stocks, also known as micro-cap stocks, nano-cap stocks, small-cap stocks, or OTC stocks, are common shares of small public companies that initially trade at low prices per share. the reason behind does not invest in penny stock is lack of liquidity.most of the time we buy a penny stock and because of lack of liquidity, we are unable to exit in there stock st the current time and suffer huge losses(huge losses because penny stock is inexpensive so that's why we buy more number of the stock) but still if you want to buy the penny stock choose which penny stock which looks like strong fundamental.

at the time of the beaten-down market,  the strong fundamentally strong companies share price goes down and this is the best time to buy there fundamentally stock to get a good return. high weighted give those stock which declares profit in at least last quarter after posing losses for several quarters

this is the third most important things which you have to remember at the time of investing the if you are putting your hard earn money so at least it is your responsibility to know the business of the company if you don't understand the business of the company dont invest your money at that company. Invest only in the company whose business you understand

Unlike many investors do, you should avoid the herd mentality that is influenced by the actions of your acquaintances, neighbors or relatives without evaluating the current information and underlying stocks. Thus, if everybody around is investing in a particular stock, the tendency for potential investors is to do the same. But this strategy is bound to backfire in the long run if you have not chosen the stock by careful analysis.

so these are the important thing which you should remember before investing in a beaten-down  market, I hope this blog also gives you a value and enhance your knowledge, so please  share this blog,
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